INFRASTRUCTURE, BASIC/PILLAR INDUSTRIES
In 2013, the Bank's key focus remained on primary areas such as coal, electricity, oil, transportation, agriculture, forestry, water resources, telecommunications and public infrastructure. Total loans in these sectors increased by RMB 391 billion, accounting for 54% of the Bank's aggregate increase in loans for the year. The Bank provided support to national priority projects, including the highway network, high-speed rail, metro rail system, new energy-based power generation, large airport construction, small town development, restructuring of the coal-related industry and other projects of national priorities.
In 2013, the Bank increased support for comprehensive upgrading of coal-fired power plants, renewable and new energy projects, including nuclear wind and hydro power. Specific projects included Phase II of Jiangsu Tianwan Nuclear Power Plant, the Miaowei Hydropower Station on the upper reaches of the Lancang River, the No. 4 Yandun 200MW Wind Farm in Hami and the Ningbo Beilun Waste-to-Energy Project. It also supported the construction of a grid-connected photovoltaic power plant that reduced the overcapacity of photovoltaic industry, which in turn helped to balance the country's energy structure. In 2013, new lending to the electric power sector amounted to RMB 29 billion, with an outstanding receivable balance of RMB 750.5 billion at year-end.
ROAD AND HIGHWAY
In 2013, the Bank rigorously pushed funding for the expansion of national highway and road networks, especially in central and western China. Key projects included the Zunyi-Guiyang section (in Guizhou province) of the Lanhai National Highway and the Liuzhou-Wuzhou Highway (in Guangxi). The Bank made loan commitments totalling RMB 378.8 billion to this sector in 2013, supporting the construction of 6,199 km of highways, 4,336 km of first and second-grade roads and 27,887 km of rural roads. Incremental loans totalled RMB 147.5 billion. As of the end of 2013, the Bank had an aggregate outstanding balance of RMB 1,238.2 billion in loans to this sector.
In 2013, CDB diversified its financial services products to adapt to the changes brought about by China's railway industry reform. The Bank deepened its cooperation with China Railway Corporation on railway construction, rolling stock procurement, bond underwriting and asset securitization, and provided financing support to projects of intercity railway, urban railway and railway construction for resource development. The Bank also actively supported the initiative of international expansion in the railway sector. Total loan disbursement for the sector amounted to RMB 113.9 billion in 2013. As of the end of 2013, the Bank had an outstanding loan balance of RMB 541.1 billion to the railway industry, maintaining its leading position in that market sector.
PETROLEUM AND PETROCHEMICAL
In 2013, the Bank continued its support for the national and commercial petroleum reserves and deepened its cooperation with China National Petroleum Corporation and SINOPEC Group by financing the Fujian Petrochemical Refinery and Quanzhou's 12 million ton refinery, as well as supporting their overseas oil exploration and development projects. As of the end of 2013, the Bank's outstanding loan receivable balance in this sector was RMB 477.3 billion.
With a continued focus on industry upgrading, the Bank actively supported restructuring within China's fragmented coal industry, in addition to innovative coal processing projects such as coal-to-oil conversion and coal-to-gas conversion. Key projects included the Shenhua Ningxia Coal Industry Group's 4 million ton Coal-to-Liquid project and Inner Mongolia Huineng Group's Changtan 20 million ton open-pit coal mine. As of year-end 2013, the Bank's total loans to coal-related projects were RMB 157.5 billion.
POSTAL AND TELECOMMUNICATIONS
The postal and telecommunications sector remains one of the fundamental, strategic and pioneering industries of the Chinese economy and is an area to which the Bank has given considerable support. In 2013, responding to national industrial policy, the Bank financed the Broadband China and Smart City programs and Chinese telecom equipment-makers' expansion into international markets in their collaboration with foreign counterparts. As of the end of 2013, the Bank had outstanding loans of RMB 89.9 billion in this sector.
AGRICULTURE, FORESTRY AND WATER RESOURCES
In 2013, CDB further increased its financing support to the development of modern agriculture in China. Through setting up model programs, the Bank encouraged business innovations and focused on key projects in seeding, animal husbandry, dairy, crop and produce processing. In so doing, the Bank helped align the country's new urbanisation initiatives with the development of modern agriculture, and address food security, price stability and food safety concerns. Partnering with the Ministry of Water Resources, the Bank also funded key national projects, such as construction of water supply facilities in five provinces in southwest China, including Yunnan province, as well as drinking water supply projects in Lintan, Linxia and five other counties of Gansu province. New loans made to the water resources sector in 2013 reached RMB 68.3 billion, up by 48.8% from the prior year. As of the end of 2013, the Bank's outstanding loans to the agriculture, forestry and water resources sectors totalled RMB 191 billion.
In 2013, CDB vigorously promoted public infrastructure building and new urbanization in China by improving public service and urban transport capacity. It promoted city-and-industry integration through pilot projects in Anhui, Liaoning and Suzhou. In addition, the Bank continued to boost support for the development of port terminals, civil aviation and urban railway networks, such as the container terminal in the Jingtang Zone of Tangshan Port, expansion of Guangzhou Baiyun Airport, urban rail systems in Beijing, Shanghai and Shijiazhuang, and the logistic infrastructures of Chongqing's bonded port area and Alibaba Taobao Shopping Mall. As of the end of 2013, the Bank's outstanding loans for public infrastructure projects amounted to RMB 1,324.8 billion.
RESTRUCTURING; INNOVATION; UPGRADING
COORDINATED REGIONAL DEVELOPMENT
In 2013, the Bank continued to implement its regional development strategy to facilitate the coordination of development between central and western China, by funding the Silk Road Economic Belt, the Qaidam Circular Economy Pilot Zone and the Lhasa-Linzhi Highway. The Bank's new loans to the central and western regions during 2013 totalled RMB 343.7 billion, accounting for 55.9% of total new loans of the Bank, whilst new loans to the Northeast Industrial Base were RMB 70.3 billion, accounting for another 11.4% of total new underwritings. Loans made to Tibet and Tibetan-inhabited areas in four provinces during the year totalled RMB 21.3 billion, while new loans to Xinjiang were RMB 30.7 billion, which placed CDB first among Chinese banks in providing loans to these areas.
INDUSTRIAL RESTRUCTURING AND UPGRADING
Industrial restructuring and upgrading is an integral part of China's economic gear-shifting efforts. In 2013, the Bank promoted restructuring in the key industries of electronics, pharmaceutical, steel and rare earths, to promote a more rational supply-demand production capacity within those industries. It provided financing for steel, coal, non-ferrous metals, auto manufacturing and coal-fired power plants, to support their industrial restructuring and technological upgrades. The Bank also boosted support for the development of high-end equipment manufacturing in the area of pharmaceutical-grade chemicals, digital control machinery and engineering machinery, by investing in projects such as TCL's equity investment in COST, Shanghai Shyndec Pharmaceutical Co., Ltd.'s acquisition of Zhonglian Pharmaceutical, the industry supply chain adjustment of Jiugang Group, technology upgrading of the Northern Copper Yuanqu Smelting Plant and Jaguar-Land Rover's joint venture program.
STRATEGIC EMERGING INDUSTRIES
In 2013, the Bank supported the development of strategic emerging industries and advanced manufacturing through innovation in financing structures. Collaborating with the related ministries, the Bank explored new ways of financing suitable for strategic emerging industries, such as advanced flat-panel display, genetic engineering, digital medical equipment, biomedicine, new materials and "smart grids" in Jiangsu, Anhui, Hubei, Guangdong and Shenzhen. Key industry players that received our financing included BOE Technology's generation 8.5 LCD production line, Wuhan's bio-industry base, Hisun Pharmaceutical's biological engineering and Shenzhen Accordance Pharmaceutical's project.
The Bank also worked diligently to foster growth in strategic emerging industries, by providing financing support for acquisition, research and development projects to quality enterprises like San'an Optoelectronics and Dong Xu through the "Finance + Enterprise" program. Furthermore, it supported the development of shipping and shipbuilding industries, by providing financing support to key players such as COSCO and China Shipping for the upgrading of their transport structure, and to key shipbuilders such as China State Shipbuilding Corporation, China Shipping Industrial Corporation and COSCO Shipyard, to allow them to build more environmentally-friendly ships and LNG carriers, as well as convert themselves into high-end marine engineering manufacturers with the most advanced technologies of the industry.
ENVIRONMENTAL PROTECTION, ENERGY CONSERVATION AND EMISSIONS REDUCTION
To support the development of low-carbon cities in China, the Bank has continued to implement the national green-credit policy that favors environmentally friendly projects in its lending practice, especially in areas of air pollution treatment, the recycling industry, watershed management, sewage treatment, ecological environment protection, industrial upgrading for energy conservation and clean/renewable energy. During 2013, the Bank provided financing support to circular economy projects such as the sewage treatment system of Changchun Water Group, Industrial Gases Island at Karamay Petrochemical Park, and comprehensive use of calcium carbide exhaust at Xinjiang TianYe Group. As of the end of 2013, the Bank's outstanding loans to environmental protection and energy conservation projects stood at RMB 894.5 billion, up by 5.8% year-on-year, which contributed to savings of 65 million tons of standard coal and 170 million tons of water, and reduction of 170 million tons of carbon dioxide and 3 million tons of sulphur dioxide.
In 2013, the Bank strengthened its cooperation with the Ministry of Culture and the State Administration of Cultural Heritage to promote the arts and crafts of ethnic groups of Tibetan, Qiang and Yi and the protection of national heritage sites, by exploring new ways of financing and providing support to leading players of the cultural industry. Key projects included the Core Protected Area of Beijing North Central Axis, the World Heritage Park at Longmen Grottoes, and the Lu-Family Residence Protection Project in Dongyang. As of the end of 2013, the Bank had outstanding loans totalling RMB 156.8 billion in the cultural industry, making it the leading lender in this sector.
LIVELIHOODS AND SOCIAL WELLBEING
Protecting and improving people's wellbeing is not only a significant element of China's social development, but also a key area to which the Bank has provided tremendous support. In 2013, the Bank actively cooperated with related authorities and local governments, created innovative financing models and channelled funds to support areas of housing, healthcare, employment, education, agriculture and new rural development. The Bank made further progress in poverty alleviation lending by disbursing RMB 222.1 billion in loans to poor counties as so designated by the central and provincial governments. In addition, emergency loans of RMB 8 billion were issued for the relief of earthquake-hit Lushan and Ya'an and other disaster-hit areas.
In 2013, the Bank lent RMB 160.5 billion to support projects under the government's new rural community initiative, which included the development of rural infrastructure, leading industry players, rural healthcare and education programs. As of the end of 2013, the Bank had accumulatively disbursed RMB 1,401.7 billion in loans for rural development, and had outstanding loans totalling RMB 725.8 billion.
AFFORDABLE HOUSING PROJECTS
In 2013, the Bank maintained its support to the affordable housing sector by focusing on shantytown reconstruction across China. Through product innovation and policy enhancement, the Bank made tremendous efforts in establishing a sustainable system that provides housing security to local residents and helps solve the housing problems of low-income families. It also achieved a major breakthrough in a special soft loan business for shantytown redevelopment. The Bank had a total of RMB 162.8 billion in new loans to this particular sector in 2013, and supported shantytown redevelopment in Beijing's Baiwanzhuang, Baotou's Beiliang, Heilongjiang's Harbin, Gansu's Lanzhou and Jilin. The Bank's affordable housing portforlio, for the third straight year, exceeded RMB 100 billion in incremental outstanding balance, snatching up a 60% market share or higher in each of the last three years.
In 2013, the Bank increased its support to small and micro enterprises by exploring new business models, innovations and products. Total loans made to the SME sector amounted to RMB 2.08 trillion as of the end of 2013, a 14% increase from the prior year, and the Bank's lending efforts benefitted 1.95 million SMEs and self-employed vendors, and helped create 5.08 million jobs. The China Association of Small and Medium Enterprises honoured the Bank with its award for the "Outstanding SME Lender of the Year".
In 2013, the Bank continued to grow its student loan business through various measures, including improvement in service quality, innovations in banking management, risk compensation incentives, expanded service coverage and support for entrepreneurship and employment. During 2013, the Bank lent RMB 12.52 billion, helping 2.209 million students to complete their education. The Bank was able to satisfy the borrowing needs of 80% of students from needy families across the country. The accumulative lending in this sector amounted to RMB 54.47 billion, covering 25 provinces or municipalities, 1,928 counties/districts and 2,689 colleges/universities, and assisting 9.949 million students from financially disadvantaged families.
In 2013, the Bank broadened its collaboration with foreign governments, enterprises and financial institutions in key areas of infrastructure, agriculture, social sectors and energy. During the year, the Bank made significant progress in the implementation of measures under the multilateral financial cooperation frameworks of the Shanghai Cooperation Organization Interbank Association, China-ASEAN Interbank Association and BRICS Interbank Cooperation Mechanism. It also promoted practical cooperation with the World Bank in Africa, and operated the China-Portugal Fund and the China-Africa Development Fund as overseas investment platforms. The Bank continued its support of Chinese enterprises in their "Go Global" endeavors, and promoted the internationalization of the Chinese currency, the renminbi. The Bank has always remained committed to strong risk management; as such, it made further enhancements in its risk warning system in 2013. As a result, its foreign asset quality remained stable. As of the end of 2013, the Bank had outstanding foreign currency loans of USD 250.5 billion and an offshore yuan-denominated loan balance of RMB 63 billion, which further cemented its status as a pillar of cross-border financing in China. With correspondent banking relationships set up with 670 banks in 106 overseas markets, the Bank boasted a global network of correspondent banks to support its international business.
The Bank has always concerned itself with the practical needs of partners, and thus adhered to its "building trust, sharing experiences, learning from each other and developing jointly" principle in its international collaboration practices. Under this principle, the Bank organized various experience-sharing workshops and talent development programs to help capacity building. As of the end of 2013, a total of 4,963 participants from governments in Asia, Africa and Latin America had attended various seminars organized by the Bank. In addition, funded by CDB Scholarships, nearly 100 talented youths from these developing countries came to study in China, greatly advancing cross-cultural exchanges.